Published on 30 Jun 2021 on Insider Monkey via Yahoo Finance

Hedge Funds Are Coming Back To Bellerophon Therapeutics, Inc. (BLPH)

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Bellerophon Therapeutics, Inc. (NASDAQ:BLPH).

Bellerophon Therapeutics, Inc. (NASDAQ:BLPH) investors should pay attention to an increase in enthusiasm from smart money of late. Bellerophon Therapeutics, Inc. (NASDAQ:BLPH) was in 6 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that BLPH isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.